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Monday, July 07, 2008
BSE Bulk Deals to Watch - July 7 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/7/2008 508869 APOLLO HOS E FIDELITY FUNDS MAURITIUS LIMITED S 1081220 500.00
7/7/2008 505506 AXON INFOTEC BDS SHARE BROBERS PVT LTD B 4231 24.69
7/7/2008 505506 AXON INFOTEC SANJAY KUMAR JAIN S 4500 23.34
7/7/2008 532989 BAFNA PHARMA PR VYAPAAR PRIVATE LIMITED B 247784 30.01
7/7/2008 509728 BHURUKA GAS PRABHU SECURITIES LTD B 697500 25.26
7/7/2008 509728 BHURUKA GAS SATAYANARAYAN AGARWAL S 697500 25.16
7/7/2008 590061 BRUSHMAN IND PR VYAPAAR PRIVATE LIMITED B 60000 139.40
7/7/2008 532271 CYBERMAT INF S V ENTERPRISES B 1020254 4.92
7/7/2008 532271 CYBERMAT INF S V ENTERPRISES S 1036168 4.75
7/7/2008 532985 KOTAK SENSEX EDELWEISS SECURITIES LIMITED B 15121 135.91
7/7/2008 532985 KOTAK SENSEX EDELWEISS SECURITIES LIMITED S 26224 135.98
7/7/2008 500256 LOK HOUSI CO PRIYAL INTERNATIONAL S 599700 47.50
7/7/2008 523475 LOTUS CHOC C V VARIJA KAMATH B 100000 15.37
7/7/2008 512047 NATRAJ FIN HIRAVANTI C SHAH B 23000 37.25
7/7/2008 532986 NIRAJ CEMENT N D NISSAR B 69274 95.13
7/7/2008 532986 NIRAJ CEMENT SHARMISHTA MAHESHBHAI SHAH B 306528 100.16
7/7/2008 532986 NIRAJ CEMENT GOLDSTAR FINVEST PVT LTD B 104330 86.23
7/7/2008 532986 NIRAJ CEMENT BUNIYAD CHEMICALS LIMITED B 52431 97.97
7/7/2008 532986 NIRAJ CEMENT N D NISSAR S 69274 95.29
7/7/2008 532986 NIRAJ CEMENT SHARMISHTA MAHESHBHAI SHAH S 337528 91.03
7/7/2008 532986 NIRAJ CEMENT BUNIYAD CHEMICALS LIMITED S 52431 97.87
7/7/2008 532722 NITCO TILES INDEA CAPITAL PTE LIMITED B 500000 99.80
7/7/2008 532722 NITCO TILES INDEA CAPITAL PTE LTD AC INDEA LONG TERM OPP MASTER FUND B 600000 99.80
7/7/2008 532722 NITCO TILES CREDIT SUISSE SINGAPORE LIMITED S 500000 99.80
7/7/2008 532722 NITCO TILES MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 600000 99.80
7/7/2008 531996 ODYSSEY CORP TAMMANSA D KATWA B 26500 29.90
7/7/2008 531996 ODYSSEY CORP KATWA KANCHANMALA T B 26500 29.90
7/7/2008 531996 ODYSSEY CORP SUYOJIT ENTERPRISES PVT LTD S 53100 29.83
7/7/2008 532791 PYRAMID SAIM HARDIK M MITHANI B 343474 174.87
7/7/2008 532791 PYRAMID SAIM HARDIK M MITHANI S 343474 172.48
7/7/2008 502587 RAMA PUL PAP KRISHNAGOPAL MOTILAL CHANDAK B 82000 24.35
7/7/2008 502587 RAMA PUL PAP KRISHNAGOPAL M CHANDAK S 87700 24.35
7/7/2008 532163 SAREGAMA IND JAYSHREE NIRMAN LTD. B 279787 103.50
7/7/2008 532163 SAREGAMA IND FIDELITY INVESTMENT SERVIES LTD AC FID FUNDS MAURITIUS S 280000 103.50
7/7/2008 532298 ZENITH INFOT RUANE CUNNIFF AND GOLDFARB INC B 115321 360.00
NSE Bulk Deals to Watch - July 7 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-JUL-2008,APOLLOHOSP,Apollo Hospitals Ltd,PREETHA REDDY,BUY,1000000,500.00,-
07-JUL-2008,APOLLOHOSP,Apollo Hospitals Ltd,SUNEETA REDDY,BUY,900000,500.00,-
07-JUL-2008,APOLLOHOSP,Apollo Hospitals Ltd,SUNIL KUMAR AGRAWAL,BUY,900000,500.00,-
07-JUL-2008,OILCOUNTUB,Oil Country Tubular Ltd,NAVMEE SECURITIES Pvt. Ltd.,BUY,222512,57.00,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT LTD.,BUY,79700,178.89,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT. LTD.,BUY,51224,178.41,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,HARDIK M MITHANI,BUY,633860,175.71,-
07-JUL-2008,SAREGAMA,Saregama India Ltd.,BNK CAPITAL MARKETS LTD.,BUY,279853,103.65,-
07-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,186501,140.97,-
07-JUL-2008,UNITY,Unity Infraprojects Limit,PEGASUS STOCKS AND SHARES PVT LTD,BUY,22431,364.77,-
07-JUL-2008,WANBURY,Wanbury Limited,VECTOR FINANCIAL & MANAGEMENT CONSULTANT,BUY,82000,95.00,-
07-JUL-2008,APOLLOHOSP,Apollo Hospitals Ltd,FIDELITY FUNDS MAURITIUS LIMITED,SELL,2595159,500.00,-
07-JUL-2008,OILCOUNTUB,Oil Country Tubular Ltd,NAVMEE SECURITIES Pvt. Ltd.,SELL,12,57.10,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT LTD.,SELL,225000,180.45,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,DKG SECURITIES PVT. LTD.,SELL,243000,182.18,-
07-JUL-2008,PSTL,Pyramid Saimira Theatre L,HARDIK M MITHANI,SELL,686770,178.47,-
07-JUL-2008,SAREGAMA,Saregama India Ltd.,FIDELITY INVESTMENT SERVICES LTD A/C FIDELITY FID FUNDS MAUR,SELL,280000,103.65,-
07-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,185401,140.88,-
07-JUL-2008,UNITY,Unity Infraprojects Limit,PEGASUS STOCKS AND SHARES PVT LTD,SELL,72319,370.78,-
07-JUL-2008,WANBURY,Wanbury Limited,SOMERSET FCCB A/C,SELL,83205,95.00,-
Sensex up 72 points, closes at 15,525
The Bombay Stock Exchange benchmark Sensex closed on Monday with a moderate gain of over 70 points as across-the-board selling pressure of past few sessions eased and buying activity emerged in metal, it and bank counters.
In choppy deals, the BSE barometer surged to day's highest level of 13,793.39 points bus as every rise was met with profit-booking, the Sensex ended with a paltry gain.
The 30-share Sensex fell to intra-day low of 13,475.78 before winding up at 13,525.99, a moderate gain of 71.99 points.
Similarly, the wide-based National Stock Exchange index Nifty rose by 14 points at 4,030, after touching the day's high of 4,114.50 and a low of 4,002.00 points.
Major support to the market came in from metal index which gained 220.35 points at 12,257.99, followed by information technology index which closed higher by 107.23 points at 4,175.72.
Auto index gained 76.55 points at 3,508.96, bank index 71.96 points at 5,892.79, PSU index by 68.37 points at 5,677.11, FMCG index by 53.29 points at 1,992.65, Teck index by 45.86 points at 3,093.86, capital goods index by 21.87 points at 10,708.42 and power index by 14.22 points at 2,320.46.
Small-cap index rose by 143.34 points at 6,593.01 and mid-cap index by 61.57 points at 5,339.81.
However, oil and gas index fell by 184.02 points at 8,882.14 and healthcare index by 14.71 points at 4,108.58.
Late sell-off in RIL weighs on market
The market lost most of its gains in late trade ending marginally higher after reports filtered in that India's Defence Attache Brigadier R D Mehta and three other Indians among forty-one people were killed in a suicide attack on the Indian Embassy in Kabul today. A sharp slump in prices of Reliance Industries (RIL), Reliance Communications, Reliance Infrastructure, Larsen & Toubro, and Bharat Heavy Electricals caused the late slide on the bourses. The market had remained firm in most part of the day on firm global cues and due to easing of political uncertainty.
IT, FMCG stocks gained whereas oil & gas and capital goods stocks fell. The market breadth was strong with small-cap and mid-cap shares staging a comeback after a sharp recent plunge.
Poitical worries receded with Samajwadi Party (SP), a regional party, on making it clear during the week end that it will support the Congress-led United Progressive Alliance (UPA), at a time when Left parties are on the verge of withdrawing support. The Left front has set 7 July 2008 as deadline for the government to let them know whether it intends to approach the International Atomic Energy Agency to seal the India-specific safeguards agreement.
European markets which opened after the Indian markets were in green. Key benchmark indices in France, Germany and UK were up between 0.46% to 0.61%.
The 30-share BSE Sensex rose 71.99 points or 0.54% at 13,525.99. At the day’s high of 13,793.39 hit in mid-morning trade, the Sensex gained 339.29 points. Sensex was up 22.29 points at the day's low of 13,476.29 hit in late trade.
As per the provisional figures on NSE, the foreign institutional investors (FII)'s sold shares worth Rs 439.57 crore,while domestic funds bought shares worth Rs 75.9 crore today, 7 July 2008.
The broader based S&P CNX Nifty gained 14 points or 0.35% at 4,030. Nifty July 2008 futures were at 3979, at a discount of 51 points as compared to spot closing of 4030.
From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,680.78 points or 36.21%. It is down 6,761 points or 33.32% in calendar year 2008 so far.
BSE clocked a turnover of Rs 6,697 crore today 7 July 2008 as compared to a turnover of Rs 5,677.98 crore on Friday, 4 July 2008. NSE's futures & options (F&O) segment turnover was Rs 44,634.29 crore, which was higher than Rs 44,222.20 crore on Friday, 4 July 2008.
The market breadth was strong on BSE, with 1853 gainers outpacing 788 losers. 65 stocks remained unchanged. From the 30-member Sensex pack, 22 advanced while the rest declined.
The BSE Mid-Cap index was up 1.17% at 5,339.81, while the BSE Small-Cap index was up 2.22% at 6,593.01. Both these indices outperformed the Sensex.
BSE FMCG index (up 2.75% to 1,992.65), BSE IT index (up 2.64% to 4,175.72), BSE Auto (up 2.23% at 3,508.96), BSE Metal index (up 1.83% to 12,257.99), BSE TecK index (up 1.5% to 3,098.36), BSE Bankex (up 1.24% at 5,892.79), BSE PSU index (up 1.22% to 5,677.11), BSE Consumer Durables index (up 0.85% to 3,602.45), BSE Realty index (up 0.66% at 4,660.69), BSE Power (up 0.62% to 2,320.46), outperformed Sensex.
The BSE Capital Goods index (up 0.2% at 10,708.42), BSE Health Care index (down 0.36% at 4,108.58), The BSE Oil & Gas index (down 2.03% to 8,882.14), underperformed Sensex.
India’s second largest power utility firm by sales Reliance Infrastructure rose 0.65% to Rs 778.55. It came off from session's high of Rs 838.75. India’s second largest telecom services provider by sales Reliance Communications fell 4.22% to Rs 419.80. It came off from session's high of Rs 454.90. It was the top loser from Sensex pack.
India’s largest private sector bank by sales ICICI Bank rose 0.52% to Rs 603.75. It came off from session's high of Rs 639.95.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 3.38% at Rs 2,028.15. It was the second biggest loser from the Sensex pack.
Cairn India (down 5.49% to Rs 237.70), Essar Oil (down 1.95% to Rs 176.20) and Reliance Petroleum (down 2.77% to Rs 166.55) edged lower. Shares of state-run oil marketing companies rose. BPCL (up 5.52% to Rs 240.90), HPCL (up 4.2% to Rs 192.20) and Indian Oil Corporation (up 1.96% to Rs 348) edged higher.
As per reports, private oil companies like Reliance Industries (RIL), Essar and Cairn may have to forgo some of their profits to share the huge subsidy burden in the oil sector. A proposal on these lines, which was first mooted by the Left parties, is now being considered seriously by the ruling party leadership, following a similar demand by the Congress' latest political ally, the Samajwadi Party. A windfall tax is normally levied on oil exploration and production companies who reap huge profits when global crude prices increase.
Capital goods stocks declined. India’s largest engineering and construction firm by sales Larsen & Toubro (L&T) lost 1.06% to Rs 2,408. The company today bagged an order worth Rs 446 crore from JSW Power Transco for transmission lines. India’s largest electric equipment maker by sales Bharat Heavy Electricals fell 2.26% to Rs 1466.35. However Suzlon Energy rose 1.35% to Rs 194.80.
IT stocks gained. India's second largest software exporter by sales Infosys Technologies rose 2.61% at Rs 1,801.20. The company will announce its Q1 Result on 11 July 2008. Satyam Computer Services (up 4.28% to Rs 481.95), Wipro (up 2.54% to Rs 440) and Tata Consultancy Services (up 0.98% to Rs 852) edged higher.
FMCG stocks rose. ITC (up 3.98% to Rs 177.60), United Spirits (up 4.15% to Rs 1,128.50), Hindustan Unilever (up 3.89% to Rs 209.45) edged higher.
Jaiprakash Associates (up 4.47% to Rs 160.15), Mahindra & Mahindra (up 4.4% to Rs 496.35), Maruti Suzuki India (up 4.34% to Rs 574.35), State Bank of India (up 3.92% to Rs 1,171.75), ACC (up 3.82% to Rs 496.20) edged higher from Sensex pack.
Tata Motors (down 2.07% to Rs 392.55), HDFC (down 0.02% to Rs 2,055), Ranbaxy Laboratories (down 0.65% to Rs 534.90), Ambuja Cements (down 1.07% to Rs 73.90) edged lower from Sensex pack.
Spice Communications clocked the highest volume of 28.59 crore shares on BSE. Reliance Natural Resources (2.63 crore shares), IFCI (2.05 crore shares), Reliance Petroleum (1.16 crore shares) and Ispat Industries (1.01 crore shares) were the other volume toppers in that order.
Spice Communications clocked the highest turnover of Rs 2,209.24 crore on BSE. Reliance Capital (Rs 346.52 crore), Reliance Insustries (Rs 275.37 crore), Reliance Petroleum (Rs 196.48 crore) and Reliance Natural Resources (Rs 182.99 crore) were the other turnover toppers in that order.
Asian markets which opened before Indian market, edged higher. The key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.11% to 4.59%. US stock markets were closed for the Independence Day holiday on Friday, 4 July 2008.
US light crude fell 1.7% to $142.81 a barrel, having surged past $145 last week to record highs.
Profit taking trims Sensex gains
Even as major Asian indices like Nikkei, Hang Seng, Straits Times and Kospi managed to clock decent gains, the Sensex failed to hold on to its early rally and closed way off its highs amid profit taking towards the closing hours. Riding on the back of Friday's buoyant close and optimism in several Asian markets, the Sensex resumed 108 points higher at 13,562 and advanced sharply on sustained buying support to scale above 13,700 and touch an intra-day high of 13,793. After remaining above 13,600 for the entire first half, the Sensex came under the grip of profit taking and slipped below 13,550 to touch the day's low of 13,476, 22 points above the last close of 13,454. The Sensex finally ended the session with steady gains of 72 points at 13,526, while Nifty gained 14 points to close at 4,030.
Among the front liners, JP associates soared 4.47% at Rs160.15, Mahindra & Mahindra rose 4.40% at Rs496.35, Maruti Suzuki added 4.34% at Rs574.35, Satyam Computer Services jumped 4.28% at Rs481.95, ITC advanced 3.98% at Rs177.60 and SBI gained 3.92% at Rs1,171.75, while Hindustan Unilever, ACC, Hindalco, DLF, Infosys and Wipro gained 2-3% each. However, Reliance Communications dropped 4.20% at Rs419.80, while Reliance Industries declined 3.38% at Rs2,028.15, BHEL lost 2.26% at Rs1,466.35 and Tata Motors lost 2.07% at Rs392.55.
The breadth of the market was positive. Of the 2,706 stocks traded on the BSE, 1,853 stocks advanced, 788 stocks declined and 65 stocks ended unchanged. On sectoral front, 11 out of 13 sectoral indices ended positive. The BSE FMCG was the lead performer and rose 2.75% at 1,993, while the BSE IT index gained 2.64% at 4,176.
FMCG stocks witness strong buying support. United Breweries shot up by 8.80% at Rs141, United Spirits scaled up 4.15% at Rs1,128.50, ITC added 3.98% at Rs177.60 and Dabur gained 3.37% at Rs81.20. Britannia and Tata Tea were up over 1% each.
Over 28.59 crore Spice Tele shares changed hands on the BSE followed by Reliance Natural Resources (2.63 crore shares), IFCI (2.05 crore shares), Reliance Petroleum (1.16 crore shares), Ispat Industries (1.01 crore shares) and Chambal Fertiliser (80.01 lakh shares).
Post Session Commentary - July 7 2008
The domestic market tumbled in the final trading hours to give up most of its initial gains to close marginally above the dotted line due to profit booking across the counters. The market opened with upbeat note on the back of mixed global cues and relief in political worries as SP may support the UPA in Nuke Deal. It continued to extend it momentum but some selling pressure griped the market in closing hours and pares some of its gains, but still concluded the day in positive territory. BSE Sensex closed above 13,500 points today and NSE Nifty 4,000. Oil & Gas and Pharma stocks were major sufferers of selling pressure while Metal, IT, Auto and Bank stocks were best performers as witnessed most of the buying in these baskets. The BSE Small Cap index closed the day with gain of more than 2%. The market breadth was positive as 1853 stocks closed in green while 788 stocks closed in red and 65 stocks remained unchanged.
The BSE Sensex closed higher by 71.99 points at 13,525.99 and NSE Nifty ended up by 14.00 points at 4,030.00. The BSE Mid Caps and Small Cap closed positive with gain of 61.57 points and 143.34 points 5,339.81 and 6,593.01 respectively. The BSE Sensex touched intraday high 13,793.39 of and intraday low of 13,475.48.
Gainers from the BSE are JP Associates (4.47%), M&M Ltd (4.40%), Maruti Suzuki (4.34%), Satyam Comp (4.28%), ITC Ltd (3.98%), SBI (3.92%), HUL (3.89), ACC Ltd (3.82%), Hindalco (3.08%) and DLF Ltd (2.76%).
Lossers from the BSE are Reliance Com Ltd (4.20%), Reliance (3.38%), BHEL (2.26%), Tata Motors (2.07%), Ambuja Cement (1.07%) and Ranbaxy Lab (0.65%).
The Metal index closed up by 220.35 points at 12,257.99. Gainers are JSW SL (6.35%), Jindal Steel (4.86%), Jindal Saw (4.80%), Ispat Industries (3.63%), Hindalco (3.08%) and Bhushan Steel (2.72%).
The IT Index closed higher by 107.23 points at 4,175.72. Gainers are Financ Tech (4.29%) along with Satyam Comp (4.28%), Mphasis Ltd (4.19), HCL Tech (3.35%), Infosys Tech (2.61%), Wipro Ltd (2.54%) and Tech Mahindra (2.30%).
The Auto Index closed higher by 76.55 points at 3,508.96. Gainers are Apollo Tyre (7.61%) along with M&M Ltd (4.40%), Maruti Suzuki (4.34%), Exide Industries (4.28%), Hero Honda Motors (3.39%) and Ashok Leyland (3.32%).
The Banking index closed up by 173.04 points at 5,820.83. Gainers are SBI (3.92%), Kotak Bank (3.29%), Bank of India (3.07%), OBC (1.96%), Bank of Baroda (1.53%), and Karnataka Bank (1.28%).
The Oil & Gas index closed lower by 184.02 points at 8,882.14. As Cairn India (5.49%), Reliance (3.38%), Reliance Nat Res (3.25%), Reliance Petroleum (2.77%) and Essar Oil Ltd (1.95%) closed in negative territory.
The Pharma index lost 14.71 points to close at 4,108.58. Major lossers are Bil Care Ltd (4.75%), Lupin Ltd (1.68%), Piramal Ltd (1.47%), Biocon Ltd (1.34), Glenmark Pharma (1.24%) and Dr Reddys Lab (0.95%).
Morning Call - July 7 2008
Market Grape Wine :
In House :
Nifty at a support of 3965 and 3893 levels with resistance at 4040 and 40495 levels .
Buy : Adlabs above 382 target 396 s/l of 376
Buy : DLF above 415 target 428 s/l of 409
Buy : Rolta in F&O above 260 target 275 s/l of 254
Buy : ALBK above 54 target 62 s/l of 51
Out House:
Markets at a support of 13113 & 13031 resistance at 13786 & 13636 levels .
Buy : Infy & satyam
Buy : NTPC & Suzlon
Buy : Tisco
Buy : RPL & RIL
Buy : LT & Bhel
Buy : RelCap & adalbs
Buy : Sbin & KotakBank
Buy : Centextile & GujnreCoke
Dark Horse : RIL , LT , Infy , Wipro , Satyam , RPL , Bhel , Suzlon & Tisco
Areva T&D
We recommend a buy in Areva T&D India from a short-term perspective. From the charts of Areva T&D, we see that it had been on a downtrend from its 52-week high of Rs 3,280 (recorded in November 2007) till June low of Rs 1,199. However, the stock found support at around Rs 1,300 (a long-term support level) and reversed direction.
On July 4, the stock conclusively broke out of the down trendline by jumping up by 9 per cent with good volumes. The stock’s reversal has been supported by the positive divergence in the daily relative strength index. The stock also crossed over the 21-day moving average. The daily relative strength index (RSI) is rising in the neutral region towards the bullish zone and the weekly RSI has entered in to the neutral region form the bearish zone.
Our short-term forecast for the stock is bullish and we expect it to move up until it hits our price target of Rs 1,564 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 1,349
via BL
Pre Session Commentary - July 7 2008
The Indian Market is expected to have a positive opening on the back of mixed global cues. On Friday, the Indian market closed in green with a smart recovery. Market neglected the weak European market and inflation rate, which touched a fresh high of 11.63% for the week ended 21st June 2008 as against 11.42% of the previous week. The domestic market tumbled at opening but soon started to recover on the back of buying interest from the hammered down sectors like realty, capital goods, power, banking and oil stocks. Further it extended its gains to close in positive zone. The BSE Sensex closed above 13,400 points today and NSE Nifty above 4,000. All indices except Metal closed in green and among those Capital Goods, Reality, Power Oil & Gas and Bank stocks were in limelight as witnessed most of the buying pressure. The Capital Goods and Reality indices closed with gain of more than 6%. The BSE Sensex closed higher by 359.89 points at 13,454.00 and NSE Nifty ended up by 90.25 points at 4,016.00. We expect that market may gain some ground during the trading session.
US markets were closed on Friday due to the Independence Day holiday.
Today the major stock markets in Asia are trading mixed. Asian markets declined in the initial trading, on the concern of falling global growth that is affecting the demand for goods and commodities. Further, the markets gained some strength.
Hang Seng index is trading higher by 99.69 points at 21,523.51 along with Taiwan Weighted trading up by 7.92 points at 7,233.33 while Japan’s Nikkei trading down by 8.43 points at 13,229.46.
The FIIs on Friday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs3,309.80 Crore and the gross debt purchased was Rs1,235.90 Crore while the gross equity sold stood at Rs4,012.20 Crore and gross debt sold stood at Rs76.70 Crore. Therefore, the net investment of equity reported was (Rs702.50) Crore and net debt was 1,159.20 Crore.
The rupee gained 14 paise to close at 43.15/16 against the US currency after a smart rally in local equity markets and on some dollar selling by foreign banks. In active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened slightly better at 43.25/26 and improved further to settle the day at 43.15/16 against yesterday''s close of 43.29/31 a dollar.
Today, Nifty has support at 3,942 and resistance at 4,111 and BSE Sensex has support at 13,214 and resistance at 13,748.
Market may remain volatile
The market may witness cautious trend as US Market was closed on Friday and Asian indices are exhibiting mix trends in the morning trades. Investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 3975 and 3920 on the downside while on the upper side it may move up to 4050. The Sensex has a likely support at 13300 and may face resistance at 13600.
US Maket was closed on Friday on account in Independence Day of US.
Trading Calls - July 7 2008
Nifty (4016) Sup 3950 Res 4080
Buy BHEL (1500)
SL 1480 Target 1540, 1550
Buy PFC (106)
SL 101 Target 113, 115
Buy ONGC (876)
SL 868 Target 892, 898
Sell RPL (171)
SL 175 Target 166, 164
Sell Essar Oil (179)
SL 183 Target 170, 168
Battle shifts to politics!
A wise man thinks it more advantageous not to join the battle than to win.
Though the key indices registered yet another weekly loss, there is some hope for the bulls. For a change, the action would be more on the political front for the earlier part of this week. The battle-lines have been drawn and most key players have made their positions more or less clear. With the SP backing the N-deal, chances of early elections have reduced. Still, there may be some surprises - positive or negative. The deal itself may run out of time due to US elections. The problem with parties like the SP, the latest to offer support to a troubled government, is that they talk before the walk. The SP has reportedly started demanding that private oil companies like RIL, Essar and Cairn pay windfall profit tax. Most market participants may view this as a proxy war between the Ambani brothers as Anil Ambani is ‘close’ friends with the SP leadership.
Back to markets, we expect a cautious opening as Asian markets are mixed. The Hang Seng and Shanghai have posted strong gains. Other regional markets are either flat or marginally in the red. In the US on Thursday, the Dow Jones ended up while the Nasdaq and S&P 500 were almost unchanged. Wall Street was closed on Friday due to the Fourth of July holiday. European markets ended lower on Friday.
The gains in the Indian market on Wednesday and again on Friday suggest that the bulls still have some fight left in them. F&O data indicates that the market could rise slightly more before resuming the southward march. The Nifty July Futures shed some open interest on Friday while the discount on them fell by about 10 points. The open interest in stock futures too increased. At the same time, there was build-up in puts while calls saw some unwinding.
One still can't say with absolute certainty that the ‘bearish’ phase is over. There are still considerable headwinds facing global and Indian markets. Further negative news is not ruled out. Crude oil remains the biggest joker in the pack. Technically, the key levels to watch out for are 3848 on the way down and 4325 on the higher side (Ah, when will it come!).
For India, the near-term trigger may come from the latest quarterly results. In a short time we would know how India Inc. is coping with multiple headwinds like rising inflation, higher borrowing costs and slowing demand. With overall expectations low, there could be some positive surprises.
The FIIs were net buyers of Rs3.72bn (provisional) in the cash segment on Friday while local institutions pulled out Rs970mn. In the F&O segment, they were net buyers of Rs1.2bn.
On Thursday, the FIIs were net sellers of Rs7.02bn in the cash segment, bringing their year-to-date outflows to $6.5bn. Mutual Funds pumped in Rs2.42bn on the same day.
The MSCI Asia-Pacific Index lost 0.4% to 132.24 at 10:17 a.m. Tokyo time, with about three stocks retreating for every two that rose. The regional benchmark has declined for the sixth day out of seven, and has dropped 16% this year.
Japan's Nikkei 225 Stock Average fell 8 points to 13,229, a 13th consecutive decline and extending its longest losing streak since 1954.
The Hang Seng in Hong Kong was up 254 points at 21,667 while the Shanghai Composite index in China surged 110 points or 4.1% to 2780. The Straits Times in Singapore rose 7 points to 2900 and South Korea's Kospi Index slid 12 points to 1566.
The Taiex in Taiwan added 13 points at 7241 while Australia's ASX/S&P 200 Index retreated 106 points or 2.1% at 4975.
European shares ended lower on Friday, marking a fifth weekly decline amid persistent worries about the health of the financial sector even as UBS said it could avoid losses in the second quarter and that it did not need to raise any fresh capital.
The pan-European Dow Jones Stoxx 600 index dipped 1.3% to 279.53, extending this week's retreat to 2.7%. It's fifth straight weekly drop is the longest losing streak since a seven-week fall ending January 25.
The Dow Jones Stoxx 600 index had posted strong gains on Thursday, after European Central Bank (ECB) President Jean-Claude Trichet took a neutral stance on interest rates after hiking a key interest rate by 25 basis points to 4.25%.
National benchmark indexes fell in 17 of the 18 western European markets. UK's FTSE 100 closed down 1.2% at 5,412.80, while Germany's DAX 30 fell 1.3% to 6,272.21 and the French CAC-40 dropped 1.8% to 4,266.00.
Shares of regional financial firms fell after Goldman Sachs said European banks may need to raise as much as US$141bn to shore up their capital. Bradford & Bingley tumbled to the lowest since 2000 after TPG dropped plans to buy a stake in the UK mortgage lender.
British Airways slumped as crude traded above US$144 per barrel.
Crude oil traded near $144 a barrel in New York as Iran signaled that it will maintain its nuclear program policy a day after responding to an incentives package by world powers to halt uranium enrichment.
Crude oil for August delivery traded at $143.75 a barrel on the New York Mercantile Exchange at 11:03 a.m. in Singapore. It fell as much as $1.66 to $143.63 a barrel earlier today.
In the emerging markets, the IPC index in Mexico was down 0.45% at 28,338 while the RTS index in Russia dropped 1.1% to 2187. The ISE National-30 index in Turkey was up 1.1% at 41,428.
Climate change will be among the top topics at this week's summit of the Group of Eight (G8) leading industrial nations, according to Japanese Prime Minister Yasuo Fukuda.
The summit, to be held in Japan, formally begins Monday among the heads of state of the eight industrialized countries in the group: The US, Japan, Germany, the U.K., France, Italy, Canada, and Russia
The G8 discussions could extend further on Wednesday when the group opens its doors to leaders of some of the major developing nations: China, India, Brazil, Indonesia, Mexico, South Korea and South Africa.
Last trading session of the week ended with smart gains. The see-saw trend continued over the Indian bourses as bulls again made a come back after getting hammered on Thursday.
After starting off the day on a flat note, key indices gained momentum led by gains in the index heavyweights like L&T, RCom, ICICI Bank and HDFC. Barring the Metal index, all the other BSE Sectoral indices ended with smart gains with BSE Realty index drooping over 7.5%. Even the Mid-Cap and the Small-Cap indices ended over 1.5% each.
Finally, the BSE benchmark Sensex gained 359 points to close at 13,454 and the Nifty index added 90 points to close at 4,016.
Archidply Industries Ltd. started trading at Rs74.55 on BSE against its issue price of Rs74. The scrip ended at Rs50.45 translating into a discount of 47% hitting an intra-day high of Rs74.55 and a low of Rs48.80 recording volumes of over 1,00,00,000 shares.
India Cement surged by over 4.5% to Rs130 after HSBC raised its stake in the company to 8.43%. The scrip touched an intra-day high of Rs131 and a low of Rs122 and recorded volumes of over 1,00,000 shares on BSE.
Panacea Biotec rallied by over 9% to Rs303 after the company announced that it has forayed into healthcare delivery by way of entering into collaboration to set-up 220 bed multi specialty hospital in national capital region of Delhi at Gurgaon, India. The scrip touched an intra-day high of Rs307 and a low of Rs281 and recorded volumes of over 20,000 shares on BSE.
Steel Strips ended at Rs115 down 3.3%. The company announced that the board of directors would meet on July 04, 2008 to consider and allot optionally convertible bonds to Tata Capital Ltd up to an amount of Rs200mn on preferential basis. The scrip touched an intra-day high of Rs119.95 and a low of Rs111.
L&T advanced by 6.5% to Rs2379 after reports stated that the company is in talks with a consortium of banks to raise ~Rs170bn as debt to fund its plans of entering the power generation segment. The company is in discussion with a consortium of international banks, including ICICI Bank and SBI to fund four power projects, each with a capacity of over 1000 mega watt, reports stated.
Reliance Power advanced by over 4% to Rs136 following reports that the company is planning to buy a stake in an Australian firm that owns coal mines and has an enterprise value of US$3bn. The scrip touched an intra-day high of Rs142 and a low of Rs127 and recorded volumes of over 82,00,000 shares on BSE.
Flawless Diamond advanced by 2% to Rs48 after the company announced that it is opening up its 21st retail outlet at in Andheri. The scrip touched an intra-day high of Rs52.8 and a low of Rs44 and recorded volumes of over 20,000 shares on BSE.
Educomp Solutions edged higher by half a percent to Rs2784 after the company announced that it has entered into a strategic alliance with Designmate to market its product, Eureka.in. Educomp has bought 5,000 liceBSEs of Eureka. in an exclusive rights for all private schools in India.
Educomp has bought 5,000 license of the international award-winning 3D animated product used for learning science and mathematics and available in more than 1,400 schools. The scrip touched an intra-day high of Rs2869 and a low of Rs2685 and recorded volumes of over 79,000 shares on BSE.
Reliance Industries in talks to acquire downstream assets of Chevron. (ET)
Central Electricity Authority has submitted an alternative gas distribution plan to the Government for 18mmscmd of Reliance Industries’ D-6 gas.(FE)
BPCL has entered into an equal JV with the Kenya Pipeline Co for setting up LPG bottling plant in Kenya.(BL)
Tata Motors has increased its stake in Automobile Corporation of Goa by 3% to 40.6%. (ET)
L&T plans to acquire a research company to expand its technological skills in deep sea drilling.(BS)
Tata group firm Trent plans to invest Rs20bn in setting up 50 ‘Star Bazzar’ hypermarkets in India.(FE)
MTN Group may issue 20% fresh equity to RCOM as part of multi-stage merger deal.(BS)
ONGC Videsh has been short-listed to bid as operator for deepwater blocks in Angola.(BL)
Cadila Healthcare to restructure its consumer business and create a single listed entity by early 2009.(BL)
Coal India plans to invest ~15bn for setting up 28 washeries with total capacity of 98mn tons. (ET)
Ranbaxy has successfully completed the phase II clinical trials for the first malaria drugs.(BL)
Idea Cellular plans to invest Rs6.47bn for the rollout of operations in Mumbai circle.(BS)
BSNL has asked for allocation of 10 MHz broadband wireless spectrum on an urgent basis.(BL)
M&M plans to start selling a diesel pick-up truck in the US.(BS)
GM to invest Rs12bn at its Talegaon unit near Pune.(BS)
ChrysCapital has acquired 7-8% stake in Amtek Group for Rs3.5bn.(BL)
GMR is planning a scheduled commercial airline by the end of 2010.(BS)
Areva T&D successfully type-tested its first 1,200 KV capacitor voltage transformer.(BL)
GoAir has reduced the number flights to 800 from 1,000 earlier.(BL)
Binani Cements to invest US$100mn on expansion for its plant in China and US$125mn to buy plants in Mauritius and West Asia.(BL)
Greenply Industries to set up laminate plant in Himachal Pradesh with an investment of Rs1.2bn.(BS)
Havells India plans a capex of Rs2bn on Greenfield and brownfield projects in the current fiscal.(BL)
Marks & Spencer proposal for 51% FDI in single brand retail business has been cleared by the Government.(BL)
FMCG companies may hike prices in their respective brands this month.(FE)
GNFC shut several manufacturing units due to technical problems. (DNA)
US-based Regal Entertainment and other PE Funds in talks with promoters of Pyramid Saimira Theater for ~14% stake. (ET)
Dabur India plans to focus on over-the counter products for lifestyle problems. (ET)
Biocon plans to hive off its research & development activity to a separate entity. (ET)
Reliance Power may be allowed to use excess coal from captive coal blocks of Sasan Ultra Mega Power Project. (ET)
IDFC set to build a pan-India logistics chain for creating industry specific and tailor-made facilities. (ET)
Binani Cement to consider long term bulk cement supply contract with real estate developers. (ET)
Essar Oil in race to acquire 50% stake in Kenya Petroleum Refineries. (ET)
Daimler-Hero JV to start in 2010, to make 70,000 trucks. (ET)
DoT to float draft cabinet note for auctioning 773 acres of land owned by VSNL. (ET)
UB Group to invest Rs10bn in three years to hike its brewing capacity.(BS)
Gammon Infrastructure plans to foray into waste water management.(BS)
US based distress fund Wilbur Ross may invest in SpiceJet.(BS)
Ranbaxy, Cipla, Wockhardt, Nicholas Piramal and Cadila, to soon withdraw 60 drugs combinations from the market.(BS)
L&T to restructure the engineering construction and contract divisions into four entities in 2-3 years.(BS)
Hindustan Unilever has implemented ploughshare mixing technology in its soap manufacturing plants to cut costs by 30%.(BS)
Whyte & Mackay may takeover Glen Moray, the Elgin-based distillery.(TOI)
Economic Front Page
Private Oil companies may have to pay windfall profit tax. (ET)
Direct tax collections grew 38.6% in the first quarter to Rs573.7bn.(BL)
Kenya government has invited Indian companies for participation in exploring activities.(BS)
The Government plans to allow proposal of existing GSM operators keep extra spectrum with them. (FE)
Andhra Pradesh to account for 40% of cement production in three years. (BS)
The Central Electricity Authority to look into quality issue of plant supplied by Chinese companies. (BS)
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